Friday, February 14, 2025
HomeNewsMacauMacau’s growth backed by Chinese government, defying fears of policy tightening: GS

Macau’s growth backed by Chinese government, defying fears of policy tightening: GS

The further relaxation of travel policies for mainland Chinese visiting Macau signals the ‘Chinese government’s ongoing support for Macau’s economic and non-gaming development’, alongside closer integration with the rest of the Greater Bay Area, highlights Goldman Sachs.

This stance is ‘contrary to some investors’ worries about further tightening of travel or capital flow policies following the appointment of Macau’s new Chief Executive’, the brokerage noted in its latest investment memo dated December 2nd.

Goldman Sachs emphasizes that the government’s policies continue to support Macau’s non-gaming development, a key pillar of the city’s diversification strategy.

As Macau seeks to establish itself as a hub for tourism, business, and leisure beyond gaming, the relaxation of travel policies is expected to drive further growth in these sectors, enhancing the city’s appeal to both visitors and investors.

This policy shift follows a series of earlier measures aimed at improving access to Macau. These include the addition of 10 new cities to the Individual Visit Scheme (IVS) and an increase in the duty-free shopping allowance from RMB5,000 ($690) to RMB12,000 ($1,650).

The latest changes, set to take effect on January 1st, 2025, will allow mainland Chinese residents with household registrations in Zhuhai to apply for a ‘one-trip-per-week’ visa. This enables them to visit Macau for up to seven days per trip, compared to the previous restriction of one trip every three months.

Additionally, residents holding household registrations or residence permits for Hengqin Island will qualify for multiple-entry visas, allowing unrestricted trips to Macau. However, each stay will still be capped at seven days.

AGB has learned that some border control measures, namely the policy to avoid gaming addiction, will be implemented internally by the Immigration Administration. This means there may still be limits on the number of visits for residents of Zhuhai and Hengqin traveling to Macau. However, normal leisure visits will not be affected.

Goldman Sachs also notes that reports suggest the ‘one-trip-per-week’ visa for Zhuhai residents could later be extended to other cities within the Greater Bay Area, further enhancing connectivity across the region.

Hengqin non-gaming Great bay Macau

Hengqin’s growing role

An important factor in this strategy is the role of Hengqin Island, increasingly recognized by Chinese authorities as a vital component of Macau’s future development. As Macau faces constraints in hotel capacity that could limit the growth of its tourism industry, Hengqin offers an opportunity to alleviate some of these pressures.

Goldman Sachs highlights Hengqin’s potential as a key growth area for both tourism and business development, with the island’s proximity to Macau providing significant synergies. 

In a separate note, Bank of America cites Billy Song, President of the Macau Responsible Gaming Association (MGRA), as emphasizing the importance of improving the business environment for small and medium-sized enterprises (SMEs) and enhancing living standards for residents under Macau’s new Chief Executive Sam Hou Fai

Billy Song, Macau junkets: 75 percent still inactive under new operation model
Billy Song, president of the Macau Responsible Gaming Association

Song also predicts that the administration will focus on initiatives to strengthen Macau’s integration with Hengqin, aiming to boost visitor numbers to the neighboring region.

According to Song, gaming operators are likely to face increased expectations from the Macau government. Specifically, the government may urge them to:

  • Increase investment in Hengqin to support regional development
  • Participate more actively in community activities rather than merely acting as financial investors
  • Strengthen partnerships with SMEs to foster economic collaboration

Song expects that further clarity on the administration’s policies will be provided in March, when the new Chief Executive is scheduled to deliver his first annual Policy Address.

Bank of America notes Song’s observations on the limited effectiveness of gaming operators’ non-gaming investments in driving Macau’s economic diversification. While high-profile events like concerts and sports tournaments have clear benefits, other initiatives—particularly in sectors like science, healthcare, and urban revitalization—have seen less tangible impacts.

Song suggests that the government could improve transparency in evaluating non-gaming contributions. Clearer criteria could help operators align their investments with government priorities and provide the public with a better understanding of their progress in meeting diversification commitments.

Following meetings with gaming operators, Bank of America also observes differing opinions on how Macau can better leverage Hengqin to provide lower-cost hotel accommodations.

Viviana Chan
Viviana Chanhttps://agbrief.com/
Viviana Chan is an editor, interpreter, and journalist. With over a decade of experience, she writes in English, Chinese, and Portuguese. Viviana started her career in Macau-based newspapers, where she became passionate about the region's social, financial, and cultural development. Her writing focuses on the economy, emerging industries, gaming development, political affairs, and cross cultural-exchange in the business and cultural domains. She is avid for news and eager to discover and cover stories that generate public relevance.

Related Articles

FOLLOW AGB

UPCOMING INDUSTRY EVENTS

More Articles